Fulton Company has the following data available:
$\begin{array}{l}
\text { Wage Expense, For the Year Ending December 31, 2X13} & \$95 \
\text { Wage Expense, For the Year Ending December 31,2 X 12}& \$90 \
\text { Sales, For the Year Ending December 31, 2X13}& \$900 \
\text { Sales, For the Year Ending December 31, 2X12}& \$800 \
\text { Net Income, For the Year Ending December 31, 2X13}& \$130 \
\text { Net Income, For the Year Ending December 31, 2X12}& \$ 110\
\end{array}$ If a common size income statement were prepared,what percentage would be attributable to the 2X12 wage expense of Fulton Company?
A)10.5%
B)81.8%
C)46.2%
D)58.1%
E)11.3%

Question

Fulton Company has the following data available: 
$\begin{array}{l}
\text { Wage Expense, For the Year Ending December 31, 2X13} & \$95 \
\text { Wage Expense, For the Year Ending December 31,2 X 12}& \$90 \
\text { Sales, For the Year Ending December 31, 2X13}& \$900 \
\text { Sales, For the Year Ending December 31, 2X12}& \$800 \
\text { Net Income, For the Year Ending December 31, 2X13}& \$130 \
\text { Net Income, For the Year Ending December 31, 2X12}& \$ 110\
\end{array}$ If a common size income statement were prepared,what percentage would be attributable to the 2X12 wage expense of Fulton Company?
A)10.5%
B)81.8%
C)46.2%
D)58.1%
E)11.3%

Quizplus · Accepted Answer

In a common size income statement, each item is expressed as a percentage of sales. For 2X12, the wage expense is $90 and the sales are $800. Therefore, the percentage is $ \frac{90}{800} \times 100 = 11.25\% $, which rounds to 11.3%.

Fulton Company Has the Following Data Available If a Common Size Income Statement Were Prepared,what Percentage Would